Jun. 26, 2013

TRENTON — The federal share of the costs incurred by New Jersey government entities dealing with superstorm Sandy has been increased, shifting more than $170 million in expenses from state and local taxpayers to the federal government.

The White House announced Tuesday evening that President Barack Obama had amended the disaster declaration initially issued last Oct. 30 to increase public assistance for Sandy-related costs incurred between Oct. 26 and Nov. 8 from 75 percent federal funding to 90 percent.

“That comes as great news to us,” said Harvey Cedars Mayor Jonathan Oldham on Tuesday night. “Any help is fantastic, but to go from 75 percent to 90 percent is tremendous.”

Harvey Cedars is facing a $1 million cost in out-of-pocket expenses for Sandy, Oldham said.

Seaside Heights Mayor Bill Akers said the decision shifts the borough's obligation from about $4 million to $1 million.

“For the taxpayers of Seaside, it’s like hitting the lottery,” he said.

The savings will allow Seaside Heights to consider multiple protection projects, which are costly, Akers said. The borough hopes to put in protection measures on its beach and bay fronts, he said.

Mayor Joseph Mancini in Long Beach Township said he was pleased by the announcement.

“I think that is absolutely fabulous. We need that 90 percent,” Mancini said. “The 90 percent reimbursement is very needed with all of the smaller municipalities.”

Belmar Mayor Matt Doherty said the higher amount would make a “world of difference” for his borough.

“It cannot be overstated. It makes a world of difference when it comes to a municipality like us,” Doherty said.

“The expense of what is going on above ground pales in comparison of the expense below ground for water, sewer,” Doherty said. “It is going to take years to rebuild that. The fact that its gone from 75 percent to 90 percent is the difference between taxes skyrocketing or taxes remaining stable.

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“By going to 90 percent, I am confident we will be able to keep taxes stable in Belmar for future. The reason why we have this good news is because of the outstanding leadership of Congressman Frank Pallone and Congressman Chris Smith who are tireless advocates fighting for the resources we need for Belmar and the rest of the Jersey Shore. They’ve been fighting an uphill battle since Sandy ravaged our community,” Doherty said.

Typically, the federal government picks up 75 percent of the costs of responding to declared disasters. Cost-sharing agreements were negotiated until 1980, when the 25 percent state/local share became the standard. A per capita damage threshold was also established at which the 90 percent rate would automatically kick in.

Last year, that threshold was $131 per person, amounting to nearly $1.15 billion in damages for New Jersey to qualify. The difference between the two reimbursement rates amounts to an extra $172.5 million in costs picked up by Washington, not counting the federal share of any additional costs above that threshold.

Marc Ferzan, executive director of the Governor's Office of Recovery and Rebuilding, had predicted at a New Jersey Chamber of Commerce meeting two months ago that the state would reach the threshold to trigger the higher reimbursement by July or August.

The announcement will apply retroactively to increase reimbursements already announced for state and local agencies.

For instance, state and federal officials had announced Tuesday that the Federal Emergency Management Agency would pick up $4.3 million of the $5.76 million cost for repairing the walkways, bulkheads, marina, fishing piers, docks, and related appendages at Perth Amboy Marina. Instead it will now wind up picking up nearly $5.2 million.

U.S. Sen. Robert Menendez, D-N.J., said that the federal’s government Sandy relief package had provided $556 million for public assistance projects as of Monday. The increased federal cost share will increase that amount by $83.4 million for previously announced reimbursements.